An Increase in Lump-Sum Taxes Results in

question 165

Multiple Choice

An increase in lump-sum taxes results in

• A)both the intercept and the slope of the expenditure line increasing.
• B)the intercept of the expenditure line getting larger.
• C)the intercept of the expenditure line decreasing.
• D)the slope of the expenditure line decreasing.
• E)the slope of the expenditure line getting larger.

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Definitions:

Discount

A reduction from the usual cost of something, or the amount by which an asset's book value is reduced for accounting purposes.

Inception Date

The date on which an agreement, contract, or financial instrument becomes effective.

Forward Contract

A forward contract is a customized contract between two parties to buy or sell an asset at a specified price on a future date.

Monetary Liability

An obligation of a company or individual to pay a sum of money in the future, typically involving interest.